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Investor Relations

Investor Relations at NDB

For many corporates, the scope of interaction with investors is confined to Annual General Meetings, Annual Reports and dividend declarations. An entity's attention, wider engagements and interactions, intentionally or not, are more focused on stakeholder groups such as customers and suppliers. It is seldom that they make conscious efforts to engage their shareholders and investors throughout the year.

At NDB, our stance towards investors is different. For us, investors are as important as any other stakeholder group. They have been the unwavering strength of the Bank as it has propelled and prospered forward to become one of the leading financial institutions in the country. The Bank has very well understood the importance of well-informed and well-engaged investors. As such, investor relations have become a well-organized function within the Bank alongside other day-to-day operations, with a dedicated team in conducting best in class investor relations, coming under the direct purview of the Chief Executive Officer and the Group Chief Financial Officer.

Our investor relations endeavours are a strong proponent of maintaining accessibility to the management, quality, transparency and fairness in disclosures, elimination of selective disclosures and consistency in investor relations endeavours in all conditions.

Affirming the strides NDB has made in its investor relations endeavors, in 2015, the Bank was recognized with a Silver Award at the CFA Sri Lanka Capital Market Awards. NDB was the Bronze Award winner for the same award in 2014.

 

 

Investor Relations Activities - 2015

Activity Level of Engagement
Annual General Meeting NDB hosted its 10th Annual General Meeting in March 2015, for the year 2014.
One-to-one investor meetings The Bank hosted over 60 investor meetings over the year. All these meetings have been chaired by the CEO, Group CFO or Vice President Finance & Planning.
Investor Fora The Bank hosted two large scale investor fora during the year for the full year financial performance for 2014 and the first nine months financial performance of 2015.
Investor webinars The CEO hosted four online investor webinars during the year for the financial performance of 2014 and financial performance of Q1, 2 and 3 of 2015, for local and overseas shareholders and analysts.
NDB's representation at overseas investor fora The Bank proudly represented Sri Lanka at the following key overseas investor fora held in 2015, amongst others;
  • Credit Suisse Investor Conference held in London and New York in March 2015
  • Investor Meetings in UAE - Abu Dhabi & Dubai held in UAE - 16t and 17 September 2015
  • Invest Sri Lanka - Investor forum held in London in October 2015
Annual and quarterly statements lodged to the CSE During 2015, the Bank timely lodged the Annual Financial Statements for the financial year 2014 and the Financial Statements from Q1 to Q3 of 2015. The Financial Statements were also complimented with a performance commentary for the benefit of the users of the Financial Statements.
Annual and quarterly press releases on the financial performance of the Bank and Group The Bank published press releases during 2015, on the financial performance for the financial year 2014 and the quarters 1 to 3 in all three languages of Sinhala, English and Tamil.
Email alert on financial results release As per established practice, the Bank released an email notification to investors, analysts, fund managers, etc.* just after the quarterly/annual the financial results were released to the CSE.
Reaching to investors through a revamped web page The Bank maintains a dedicated web page for investors in its corporate website structured in a user-friendly and easy to navigate format and presents a wide array of investor information.
SMS alert and CEO's comments on the release of the Annual Report NDB initiated a novel feature, combining investor relations and Annual Report in 2014, where an SMS alert was released to investors and a host of other recipients on the release of the Bank's Annual Report to the CSE. The SMS alert also directed the recipients to a short video hosted by the CEO where he commented on the financial performance of 2014.

*For the purpose of communications, the Bank maintains a comprehensive contact database of current shareholders and investors, fund managers, stock and investment analysts, professionals representing rating agencies and other relevant personnel who will benefit from the Bank's communications.

Dates of investor-related events such as releasing Financial Statements to the CSE, investor fora, investor webinar, etc. held during 2015 as well as scheduled for 2016 are available in the Financial Calendar.

Securities in Issue NDB

  • Quoted ordinary shares
  • Debentures
    • Listed rated unsecured subordinated redeemable debentures issued in December 2013
    • Listed rated unsecured subordinated redeemable debentures issued in June 2015
    • Unlisted debentures issued in June/July 2011

Ordinary Shares

1. Features of Ordinary Shares

Security Type Quoted Ordinary Shares
Listed exchange Colombo Stock Exchange (CSE) - Main Board
Featured stock indices All Share Price Index (ASPI), S&P (SL) 20 Index Bank, Finance & Insurance Index (BFI)
CSE stock symbol NDB.N0000
ISIN LK0207N00007
Bloomberg newswire code NDBB
Reuter's newswire code NBLK

2. Stock Markets Performance and NDB Share Performance - 2015

2.1 Performance of Global Equity Markets

2015 was a torrid year for global equity markets with losses being recorded in several key indices. Developed markets were hard hit, with the S&P 500 (USA), FTSE 100 (UK), S&P ASX 200 (AUS) and Hang Seng (HK) all recording losses. Supported by a weakening Yen (which investors expected would boost exports) and dovish monetary policy, the Nikkei 225 (JPN) was one of the few bright spots in equity markets, recording a gain of approximately 9% during the year. On a surprising note, despite capturing global headlines due to high volatility for most parts of the year, the Shanghai Shenzen CSI 300 index (CHN) also ended the year with a gain of over 5%.

2.2 Performance of the Colombo Stock Exchange

During 2015, the the All Share Price Index (ASPI) dropped 5.54% while the larger market cap index, S&P SL20 dropped by 11.33%. The equity market activity remained subdued in the first half of 2015 with the exception witnessed immediately after presidential elections and pre-general elections as investor sentiment improved based on expected political stability. However, towards the end of the year the ASPI was seen tumbling down due to adverse global and local conditions on equity. During the year, CSE was able to record an LKR 1.06 billion, average daily turnover. Net foreign selling of LKR 5.37 billion was witnessed in 2015 compared to a net foreign buying of LKR 21.14 billion in 2014.

2.3 Performance of the NDB Share

The NDB share price declined by 22.4% to close at LKR 194.10 by end of 2015. During the year, the share reached a high of LKR 280.00 (in May and July 2015) and a low of LKR 187.00 (in December 2015). The NDB share followed a similar trend to the ASPI with NDB declining further than the broader index towards the end of the year. This was due to the local and global conditions that adversely affected local equity and some tax proposals which were proposed in the fiscal budget for the year 2016, which impacted the banking sector.

On 13 November 2015, NDB announced an interim dividend of 2015 of LKR 7.00 per share and same was paid in November 2015. Further the, final dividend for 2015 of LKR 4.00 per share was announced on 12 February 2016 to be paid on 24 February 2016.

SHARE PRICE MOVEMENT

3. Analysis of Ordinary Shareholders as at 31 December 2015 as Per Rule 7.6 (x) of the Listing Rules of the CSE

3.1 Distribution of shareholders

As at 31 December 2015 As at 31 December 2014
Shareholding Range No. of
Shareholders 		% No. of
Shares 		% No. of
Shareholders 		% No. of
Shares 		%
1 - 1,000 5,245 66.30 1,728,113 1.04 5,039 62.88 1,693,820 1.03
1,001 - 10,000 2,236 28.27 7,110,788 4.31 2,536 31.64 8,047,949 4.87
10,001 - 100,000 346 4.37 9,317,220 5.65 351 4.38 9,678,179 5.86
100,001 - 1,000,000 56 0.71 18,440,324 11.16 59 0.74 18,393,531 11.14
Over 1,000,000 28 0.35 128,570,897 77.84 29 0.36 127,280,443 77.10
Total 7,911 100.00 165,167,342 100.00 8,014 100.00 165,093,922 100.00

 

3.2 Resident/Non-Resident Shareholding

As at 31 December 2015 As at 31 December 2014
Shareholding No. of
Shareholders 		% No. of
Shares 		% No. of
Shareholders 		% No. of
Shares 		%
Resident 7,759 98.08 114,170,880 69.12 7,865 98.14 111,113,993 67.30
Non-resident 152 1.92 50,996,462 30.88 149 1.86 53,979,929 32.70
Total 7,911 100.00 165,167,342 100.00 8,014 100.00 165,093,922 100.00

 

3.3 Individual/Institutional Shareholding

As at 31 December 2015 As at 31 December 2014
Shareholding No. of
Shareholders 		% No. of
Shares 		% No. of
Shareholders 		% No. of
Shares 		%
Individual 7,479 94.54 37,048,619 22.40 7,604 94.88 32,875,619 19.91
Institutional 432 5.46 128,118,723 77.60 410 5.12 132,218,303 80.09
Total 7,911 100.00 165,167,342 100.00 8,014 100.00 165,093,922 100.00

 

4. Twenty Largest Registered Shareholders of the Bank as at 31 December 2015 as per Rule No. 7.6 (iii) of the Listing Rules of the Colombo Stock Exchange

2015 2014
Name No. of Shares % Name No. of Shares %
1. Bank of Ceylon No. 1 Account 16,371,076 9.91 Bank of Ceylon No. 1 Account 16,371,076 9.92
2. Employees' Provident Fund 16,010,248 9.69 Employees' Provident Fund 16,010,248 9.70
3. Sri Lanka Insurance Corporation Ltd. - General Fund 9,388,488 5.68 Sri Lanka Insurance Corporation Ltd. - General Fund 9,388,488 5.69
4. HSBC International Nominees Ltd.- SNFE - NTAsian Discovery Master Fund 8,973,856 5.43 HSBC International Nominees Ltd. - SNFE - NTAsian Discovery Master Fund 8,973,856 5.44
5. Dr. S Yaddehige 8,669,000 5.25 Dr. S Yaddehige 8,669,000 5.25
6. Sri Lanka Insurance Corporation Ltd. - Life Fund 7,805,426 4.73 Sri Lanka Insurance Corporation Ltd. - Life Fund 7,805,426 4.73
7. HSBC International Nominees Ltd. - BPSS LUX - Aberdeen Global Asia Pacific Equity Fund 5,715,450 3.46 HSBC International Nominees Ltd. - BPSS LUX - Aberdeen Global Asia Pacific Equity Fund 5,715,450 3.46
8. Employees' Trust Fund Board 5,592,897 3.39 Employees' Trust Fund Board 5,303,700 3.21
9. R S Captain 5,326,985 3.23 BNY-CF Ruffer Investment Funds: CF Ruffer Pacific Fund 4,850,000 2.94
10. Bny-CF Ruffer Investment Funds: CF Ruffer Pacific Fund 4,850,000 2.94 HSBC International Nominees Ltd. - Msny-Bay Pond Partners L.P. 4,501,200 2.73
11. HSBC International Nominees Ltd. - BP2S London - Aberdeen Asia Pacific Equity Fund 4,294,800 2.60 HSBC International Nominees Ltd. - BP2S London - Aberdeen Asia Pacific Equity Fund 4,294,800 2.60
12. Hatton National Bank PLC - A/C No. 01 4,282,200 2.59 Hatton National Bank PLC - A/C No. 1 4,282,200 2.59
13. HSBC International Nominees Ltd. - MSNY-BAY Pond Partners L.P. 3,464,876 2.10 Asian Alliance Insurance PLC - A/C 03 (Life Shareholders Fund) 3,450,977 2.09
14. Asian Alliance Insurance PLC A/C 03 (Life Shareholders Fund) 3,450,977 2.09 A K Pathirage 2,970,000 1.80
15. A K Pathirage 2,970,000 1.80 Asian Alliance Insurance PLC - A/C 01 (General Fund) 2,540,977 1.54
16. HSBC International Nominees Ltd. - BBH-Matthews Emerging Asia Fund 2,515,196 1.52 Asiri Hospital Holdings PLC 2,411,583 1.46
17. Asiri Central Hospitals Ltd. 2,403,447 1.46 Asian Alliance Insurance PLC - A/C 02 (Life Fund) 2,159,746 1.31
18. Asian Alliance Insurance PLC - A/C 02 (Life Fund) 2,159,746 1.31 HSBC International Nominees Ltd. - Msny-Bay Pond Investors (Bermuda) Lp 2,045,200 1.24
19. DFCC Bank PLC - A/C 01 2,000,000 1.21 DFCC Bank PLC - A/C 01 2,000,000 1.21
20. HSBC International Nominees Ltd. - Bp2s London - Aberdeen Asia Smaller Companies Investment Trust 1,683,000 1.02 HSBC International Nominees Ltd. - BP2S London - Aberdeen Asia Smaller Companies Investment Trust 1,683,000 1.02
Total 117,927,668 71.40 Total 115,426,927 69.92

 

5. Public Shareholding

2015 2014
Percentage of the shares held by the public 90.30% 90.25%
Number of public shareholders 7,881 7,982

 

6. Directors' Interest in Shares of the Bank

As at 31 December 2015 As at 31 December 2014
Name No. of Shares No. of Shares
N G Wickremeratne Nil N/A
A K Pathirage 3,993,000* 3,993,000*
R Theagarajah 126 126
T L F Jayasekera Nil Nil
Mrs. K Fernando Nil Nil
D S P Wikramanayake Nil Nil
Mrs. W A I Sugathadasa Nil Nil
Mrs. D M A Harasgama Nil N/A
D M R Phillips Nil N/A
K D W Ratnayaka Nil N/A

*Includes shares held in the slash account

7. Information on Share Trading

7.1 Share Price Movement Trend Over the Past Five Years

Year 2015 2014 2013 2012 2011
Highest price (LKR) 280.00 266.00 182.50 155.00 390.00*
Date/s highest price was recorded 23.07.2015
22.05.2015 		03.10.2014 10.05.2013 26.09.2012 14.02.2011
Lowest price (LKR) 187.00 160.50 138.00 96.00 120.00
Date/s lowest price was recorded 28.12.2015 02.01.2014 02.01.2013 05.06.2012 06.12.2011
Price as at 31 December (LKR) 194.10 250.00 160.50 137.90 138.10
Total number of shares in issue 165,167,342 165,093,922 164,693,034 164,201,902 164,201,902

*Unadjusted price for subdivision of shares in 2011.

SHARE PRICE MOVEMENT TREND OVERTHE PAST FIVE YEARS

7.1.1 Share Price Movement Over the Year

Year 2015 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Highest price 260.00 261.00 263.00 267.00 280.00 274.80 280.00 274.90 241.10 245.00 225.00 196.00
Lowest price 235.00 220.00 245.00 245.00 262.00 255.00 255.00 238.00 220.00 215.00 193.50 187.00
Price as at month end 237.40 260.00 248.00 266.40 275.00 260.30 275.00 241.00 222.30 224.00 194.80 194.10

 

7.2 Share Trading Details

Year 2015 2014 2013 2012 2011
Number of trades '000 - NDB 9,040 8917 11406 9854 7906
Percentage of total market trades (%) 0.60 0.45 0.80 0.53 0.17
Number of shares traded - NDB 15,963,879 25,871,855 31,631,020 21,406,492 20,108,047
Percentage of total shares traded in the market (%) 0.17 0.15 0.35 0.22 0.08
Turnover - NDB (LKR million) 3,918 5,452 5,112 2,676 3,737
Percentage of total market turnover (%) 0.60 1.60 2.55 1.25 0.68

 

SHARE TRADING DETAILS

 

7.3 Shareholders' Funds and Market Capitalization

Year 2015 2014 2013 2012 2011
Shareholders' funds (NDB) in LKR million 28,382 27,876 24,514 24,883 16,925
Percentage increase/decrease in shareholder funds over the prior year (%) 2 14 -1 47 11
Market capitalization (NDB) in LKR million 32,059 41,273 26,433 22,643 22,676
Percentage increase/decrease in NDB market capitalization over the prior year (%) -22 56 17 0 -21
Market capitalization (CSE) in LKR million 2,937,998 3,104,864 2,459,897 2,167,581 2,213,873
Percentage increase/decrease in CSE market capitalization over the prior year (%) -5.37 26.22 13.49 -2.09 0.15
NDB's market capitalization as a percentage of CSE market capitalization (%) 1.09 1.33 1.07 1.04 1.02
Market capitalization rank of NDB in the CSE 21 16 20 22 23
Market capitalization (BFI sector within CSE) in LKR million 699,844 753,695 512,792 490,561 499,180
NDB's market capitalization as a percentage of BFI sector capitalization (%) 4.58 5.48 5.15 4.62 4.54
Beta value of NDB share against ASPI 1.37 1.11 0.82 1.17 0.86
Beta value of NDB share against S&P SL20 1.54 1.10 0.63 1.28 0.89

 

SHAREHOLDERS’ FUNDS AND MARKET CAPITALIZATION

Shareholders' funds of the Group reached LKR 28 billion by end 2015, a 2% increase over the prior period. Within shareholder funds, capital increased by 2% whilst retained earnings increased by 3% during the year, strengthening the shareholder funds base.

On a five year compound annual growth basis, the shareholder funds have increase by 11% from 2011 to 2015.

Market capitalization of NDB by the end of 2015 was LKR 32 billion, based on a share base of 165,167,342 which closed trading at LKR 194.10. This was a 22% drop in comparison to the market capitalization in 2014 of LKR 41 billion, which was represented by a share base of 165,093,922 which closed trading at LKR 250.00.

At a market level, the Colombo Stock Exchange also denoted a reduction in the total market capitalization,

NDB retained its position in the S&P SL 20 index , which covers the largest and most liquid stocks from the Sri Lankan equity market, at its latest annual reconstitution in December 2015.

7.4 NDB Share Performance in Comparison to Selected Local Indices

NDB SHARE PRICE MOVEMENT IN COMPARISON TO CSE INDICES

7.5 NDB Share Performance in Comparison to Key Regional Indices

NDB SHARE PRICE MOVEMENT IN COMPARISON TO KEY REGIONAL INDICES

8. Key Shareholder Return Indicators - NDB Group

Year 2015 2014 2013 2012 2011
Return on equity (%) 12.59 15.78 10.70 42.35 15.69
Gross dividends paid during the year (LKR million) 1,815 1,978 3,222 657 800
Dividend per share (DPS) (LKR) 11.00 11.00 10.00 15.00 7.50
Dividend yield (%) 5.67 4.40 6.23 10.88 5.43
Dividend payout ratio (%) 51.00 43.90 62.37 79 48.71
Earnings per share (EPS) (LKR) 21.51 25.14 16.48 55.31 15.79
Total shareholder return ratio (TSR) (%) -17.96 63.23 30.89 2.75 -18.68
Price earnings ratio (PE ratio) (Times) 9.02 9.94 9.74 2.49 8.75
Net asset value per share (LKR) 172.35 169.35 148.85 151.54 103.08
Price to book value (Times) 1.13 1.48 1.08 0.91 1.34

Return on Equity

The Return on Equity (ROE) of the NDB Group for the period under review was 12.59% and compares with an ROE of 15.78% in 2014. The Group has generated sound returns to its shareholders over the years. The Group ROE has been above other comparative market return indicators as well.

NDB GROUP ROE VS MARKET INTEREST RATES

Dividend Policy of the Bank

NDB is one of the few corporates which yields consistently high financial rewarded to its shareholders by way of dividends. To serve this purpose the Bank has been gradually increasing its profitability, whilst maintaining prudential focus on a host of other indicators such as inflation, future cash needs for the sustainable operations of the Bank i.e. liquidity and capital adequacy.

Such focus ensures that the Bank strikes the right balance amongst these crucial indicators of liquidity, capital adequacy and meaningful returns to its shareholders.

The Bank's Board approved dividend policy focuses on maintaining the ratios given below:

Ratio Policy Guidelines
Dividend payout ratio >35%
Capital adequacy >12%
Open loan position <40%
Liquidity >20%

The table below indicates how the Bank has abided by its internal policy for sustainable dividend payments over the past five years which has ensured high dividend to shareholders undisrupted business operations simultaniously.

Year 2015 2014 2013 2012 2011
Open loan position ratio (%) 9.64 10.05 8.69 3.95 2.73
Capital adequacy ratio (%) 12.59 14.68 17.87 12.38 11.26
Liquidity ratio (%) - DBU 22.24 23.85 26.22 22.02 22.54
Liquidity ratio (%) - FCBU 24.91 25.18 26.06 24.92 28.49
Minimum payout ratio (%) 35.00 35.00 35.00 35.00 35.00
Dividend payout ratio (%) 51.29 43.90 62.37 79.38 48.71

 

Dividends for the Year

Dividends per share for the year ended 31 December 2015 was LKR 11.00 (2014 - LKR 11.00). The Bank declared an interim dividend of LKR 7.00 (2014 - LKR 7.00) on 13 November 2015 and paid same on 24 November 2015. The final dividend of LKR 4.00 (2014 - LKR 4.00) was declared on 12 February 2016.

The dividend pay-out ratio for 2015 was 51%, and has been maintained well in line with the Bank's dividend policy as explained above.

The dividend yield of the Bank for 2015 was 5.67%.

DIVIDENDS FOR THE YEAR

Earnings Per Share

Basic earnings per share (EPS) for the year ended 31 December 2015 was LKR 21.51 and compared with an EPS of LKR 25.14 in 2014.

As explained in item 12.1 below, the Bank has in effect, an equity linked compensation plan (ELCP) for a set of eligible employees. The diluted earnings per share calculated based on the effect of the said outstanding share option scheme is LKR 21.51.

Total Shareholder Returns

Total shareholder returns (TSR), as measured with change in share price and dividends received during the year was a negative 18% for 2015. The main reason for the negative movement in the TSR was the drop in NDB's share price from LKR 250.00 in end 2014 to LKR 194.10 by end 2015. In terms of dividend earned during 2015 shareholders received a total of LKR 11.00 (LKR 4.00 as final dividend for 2014 and LKR 7.00 as interim dividend for 2015). During 2014, shareholders received a total of LKR 12.00 as dividends (LKR 5.00 as final dividend for 2013 and LKR 7.00 as interim dividend for 2014).

The TSR for 2015 compares with a TSR of 63% in 2014. The main reason for the large positive TSR in 2014 was the NDB's share price appreciation by 56% (a rupee equivalent of LKR 89.50) from end 2013 to end 2014.

Price Earnings Ratio

The price earnings ratio (PER) of NDB for the 12 months ended 2015 was 9.02 (times). In comparison to the PER of NDB of 9.94 (times) in 2014.

In comparison to the PER of the Colombo Stock Exchange, the Bank's PER has been lower than the CSE PER. The closing CSE PER for 2015 was 18.38 (times). When comparing the PER of NDB with the PER of the Banking, Finance and Insurance (BFI) sector of the CSE, the Bank's PER was still lower than 17.98% of the BFI sector.

PRICE EARNINGS RATIO

Price to Book Value

Price to book value (PBV) was greater than one, for the year ended 31 December 2015 at 1.13 (times) (2014: 1.48 times). The decrease in the share price (from LKR 250.00 to LKR 194.10) together with the increase in the net asset value per share (from LKR 169.35 to LKR 172.35) in end 2015 compared to end 2014 resulted in the lower PBV ratio.

Net Asset Value Per Share

Net asset value per share of the Group improved to LKR 172.35 by the end of 2015 in comparison to LKR 169.35 of end 2014, a modest increase of 2%.

9. Employee Share Ownership Schemes

9.1 Equity Linked Compensation Plan (ELCP)

The Bank obtained approval of the shareholders at an Extraordinary General Meeting held in March 2010, to enable the management staff in the rank of Assistant Vice-President and above of the Bank to take part in the voting ordinary share capital of the Bank, subject to certain limits, terms and conditions, thereby forming an Equity Linked Compensation Plan (ELCP).

Accordingly, the ELCP created a maximum of 3% of the ordinary voting shares to be allocated in five tranches. Half of such shares were to be awarded as share options and the other half as share grants in equal proportions. Each of the five tranches would amount to a maximum of 0.6% of the voting shares.

The said ELCP was concluded in 2014.

However, as per the ELCP, the eligible members of the staff can exercise share options until 2017, and accordingly have exercised share options amounting to 73,420 shares during the year ended 31 December 2015.

The said share issue resulted in the increase of the stated capital of the Bank from LKR 1,225 million to LKR 1,243 million as at 31 December 2015. The number of shares in issue increased from 165,093,922 to 165,167,342 as at 31 December 2015.

More details on the share options scheme and share grants scheme are given on Note 43 to the Financial Statements.

9.2 Employee Share Option Schemes (ESOS)

NDB maintained an Employee Share Option Scheme (ESOP) until 2014. The Colombo Stock Exchange (CSE), by Listing Rule 5.6 amended the rules relating to Employee Share Option Schemes (ESOS) and Employee Share Purchase Schemes (ESPS) by mandating that such schemes should result in the shares being offered to eligible employees for ‘purchase' or ‘subscription' in the case of ESOS and ‘acquisition' in the case of ESPS, specially prohibiting open ended schemes.

In compliance with this ruling and the Transitional Provisions thereto, the Board of Directors of National Development Bank PLC (NDB) approved the dissolution of the NDB ESOP Trust and the distribution of the ESOP shares amounting to 4,133,726 to the eligible employees of NDB in 2014.

Debentures of NDB

10. NDB has Three Debentures in Issue as Follows:

  • Listed rated unsecured subordinated redeemable debentures - June 2015
  • Listed rated unsecured subordinated redeemable debentures - December 2013
  • Unlisted privately placed debentures - June/July 2011

10.1 Rated Unsecured Subordinated Redeemable Debentures - June 2015

10.1 (A) Key Features of the Debentures
Types of Debentures Debenture Code ISIN Issue
Price LKR 		Per
Value LKR 		Interest
Rate per
Annum 		Interest Payment
Frequency 		Annual
Effective Rate
per Annum 		Redemption
(from the
Date of
Allotment) 		Interest
Payment
Dates
Type A NDB-BD-24/06/20-C2309-9.4 LK0207D23091 100 100 9.40% Annually 9.40% 60 months (5 years) 31 December
Type B NDB-BD-24/06/20-C2308-0 LK0207D23083 63.81 100 9.40% Annual compounding on the Issue Price payable on the Date of Redemption 9.40% 60 months (5 years) At the time of redemption

 

10.1 (B) Trading Details for the Year Ended 31 December 2015
Type of Debenture Debenture Capital Balance
as at 31 December 2015
LKR million 		Market Value Interest Rate of
Comparable Security
% 		Other Ratios as at Last Trade
  Highest
LKR 		Lowest
LKR 		Year End
LKR 		Interest Yield
% 		Yield to Maturity
%
Fixed rate
Type A 7,000 101.64 99.00 99.00 8.30 9.70 9.70
Type B 1,914 Not traded during the year 8.30 Not traded during the year
Total Debentures 8,914

 

10.2 Rated Unsecured Subordinated Redeemable Debentures - December 2013

10.2 (A) Key Features of the Debentures
Types of Debentures Debenture Code ISIN Issue Price LKR Per Value LKR Interest Rate per Annum % Interest Payment Frequency Annual Effective Rate per Annum % Redemption (from the Date of Allotment) Interest Payment Dates
Type A NDB/BC/19/12/18A13 LK0207D20998 100 100 13.00 Semi-Annually 13.42 60 months (5 years) 30 June and 31 December
Type B NDB/BC/19/12/18B13.4 LK0207D21012 100 100 13.40 Annually 13.40 60 months (5 years) 31 December
Type C NDB/BC/19/12/23C13.9 LK0207D21038 100 100 13.90 Annually 13.90 120 months (10 years) 31 December
Type D NDB/BC/19/12/25D14 LK0207D21053 100 100 14.00 Annually 14.00 144 months (12 years) 31 December

 

10.2 (B) Trading Details for the Year Ended 31 December 2015
Type of Debenture Debenture Capital Balance
as at 31 December 2015
LKR million 		Market Value Interest Rate of
Comparable Security
% 		Other Ratios as at Last Trade
  Highest
LKR 		Lowest
LKR 		Year End
LKR 		Interest Yield
% 		Yield to Maturity
%
Fixed Rate
Type A 1,243 112.00 104.00 104.00 8.30 11.39 11.39
Type B 1,529 112.35 112.35 112.35 8.30 9.04 9.04
Type C 3,638 117.05 117.05 117.05 9.75 10.78 10.78
Type D 3,590 Not traded during the year 9.75 Not traded during the year
Total Debentures 10,000

 

10.3 Unlisted Privately Placed Debentures - June/July 2011

In 2011, the Bank privately placed rated subordinated unsecured unlisted debentures having an aggregate face value of LKR 400 million. The proceeds of these debentures were utilized for re-lending purposes.

10.3 (A) Key Features of the Debentures

Date Amount LKR Number of Debentures Value LKR Redemption Rate of Interest
30 June 2011 1,000/- each 110,000 110,000,000 30 June 2016 03 month gross TBR + 1.00% per annum
22 July 2011 1,000/- each 290,000 290,000,000 30 June 2016 03 month gross TBR + 1.00% per annum

 

10.3 (B) Other Information
Type of Debenture CSE Listing Interest Payable Frequency Balance as at 31 December 2015 Coupon Rate % Effective Annual Yield % Interest Rate on Comparable Securities %
Floating Rate
2011- 2016 (3 month TB rate (gross)+1% p.a.) Unlisted Quarterly 400 7.82 7.82 6.87
Total Debentures 400

 

11. Information on Debentures of the Bank (As per Rule No. 7.6 x (i) of the Listing Rules of the Colombo Stock Exchange

2015 2014
Debt equity ratio (%) 12.19 10.43
Interest cover (Times) 1.55 1.58
Liquidity assets ratio (%) - Domestic Banking Unit 22.24 23.85
Liquidity assets ratio (%) - Foreign Currency Banking Unit 24.91 25.18

 

12. Directors' Interest in Listed Debentures as at 31 December 2015

Name Debenture June 2015 Debenture December 2014
As at 31
December 2015 		As at 31
December 2014 		As at 31
December 2015 		As at 31
December 2014
  No. of
Debentures 		No. of
Debentures 		No. of
Debentures 		No. of
Debentures
N G Wickremeratne 75,500 N/A 67,200 N/A***
A K Pathirage - N/A - -
R Theagarajah - N/A - -
T L F Jayasekera - N/A - -
Mrs. K Fernando - N/A - -
D S P Wikramanayake - N/A - -
Mrs. W A I Sugathadasa - N/A - -
Mrs. D M A Harasgama - N/A - N/A***
D M R Phillips - N/A - N/A***
K D W Ratnayaka - N/A - N/A***

*** Not Directors as at 2014

Credit Ratings of NDB

13. Credit Ratings

NDB at present engages the services of Fitch Ratings Lanka Ltd. for local credit ratings and the services of Standards and Poor's Rating Services for international ratings.

Ratings assigned to the Bank are subject to annual reviews. In the 2015 annual ratings review, all ratings assigned to NDB by both the rating agencies were affirmed. This is an assured indicator of the soundness with which, the Bank conducts its operations.

14. Credit Ratings Summary

Rating Entity Fitch Ratings Lanka Ltd.
Date of report 11 November 2015
National
Long-term rating AA-(lka)
Subordinated debentures A+(lka)
Soveriegn risk
Long-term foreign currency issuer default rating (IDR) BB-
Long-term local currency issuer default rating (IDR) BB-
Outlooks
National Long-Term Rating Stable
Sovereign Long-Term Foreign Currency IDR Stable
Sovereign Long-Term Local Currency IDR Stable

 

Rating Entity Standard & Poor's Ratings Services
Date of report 22 June 2015
Counterparty Credit Rating B+/Stable/B
Counterparty Credit Ratings History (27 June 2014) B+/Stable/B

15. Full Rating Reports

Please refer our Investor Relations web page within the NDB corporate website on www.ndbbank.com to read the full rating reports of Fitch ratings and Standard & Poor's Rating Services.

Other Information

16. Financial Statements in USD - Group and Bank

16.1 Statement of Profit or Loss

BANK GROUP
Year ended
31.12.2015
US$ '000 		Year ended
31.12.2014
US$ '000 		Change
% 		Year ended
31.12.2015
US$ '000 		Year ended
31.12.2014
US$ '000 		Change
%
Gross income 189,162 191,029 (1) 196,921 200,539 (2)
Interest income 154,868 160,515 (4) 156,800 161,872 (3)
Interest expenses 99,837 101,782 (2) 99,680 101,312 (2)
Net interest income 55,032 58,732 (6) 57,121 60,560 (6)
Net Fee and commission income 14,751 14,282 3 23,096 19,623 18
Net gains/(losses) from trading 7,963 6,964 14 7,963 6,964 14
Net gains/(losses) from financial investments 1,917 5,483 (65) 3,612 9,573 (62)
Other operating income 9,662 3,785 155 5,450 2,507 117
Total operating income 89,325 89,247 0 97,242 99,227 (2)
Impairment charges for loans receivables and other losses
Individual Impairment 4,106 1,082 279 4,106 1,082 279
Collective Impairment 1,102 2,964 63 1,102 2,964 63
Other provision - 285 (100) 251 - 100
Net operating income 5,208 4,332 20 5,459 4,046 35
Net Operating expenses 84,116 84,915 (1) 91,782 95,181 (4)
Operating Expenses
Personnel expenses 23,443 21,985 7 26,584 24,278 10
Depreciation and amortization 2,710 2,476 9 3,083 2,969 4
Other expenses 18,107 16,169 12 20,301 17,986 13
Total operating expenses 44,261 40,630 9 49,970 45,233 10
Operating profit before tax on financial services 39,856 44,285 (10) 41,812 49,948 (16)
Tax on financial services (6,661) (7,877) (15) (6,661) (7,877) (15)
Operating profit after tax on financial services 33,196 36,408 (9) 35,151 42,071 (16)
Share of associate companies' profits/(losses) - - - 569 744 (24)
Profit before taxation 33,196 36,408 (9) 35,720 42,816 (17)
Taxation (7,506) (10,251) (27) (8,871) (10,322) (14)
Profit for the period 25,690 26,158 (2) 26,849 32,494 (17)
Profit attributable to:
Equity holders of the parent 25,690 26,158 (2) 25,914 31,636 (18)
Non-controlling interests - - - 937 857 9
25,690 26,158 (2) 26,851 32,494 (17)
Basic Earnings per share (in USD) 0.16 0.16 (2) 0.16 0.19 (18)
Diluted Earnings per share (in USD) 0.16 0.16 (2) 0.16 0.19 (18)

 

16.2 Statement of Comprehensive Income

BANK GROUP
Year ended
31.12.2015
US$ '000 		Year ended
31.12. 2014
US$ '000 		Change
% 		Year ended
31.12.2015
US$ '000 		Year ended
31.12. 2014
US$ '000 		Change
%
Profit for the period 25,690 26,158 (2) 26,851 32,494 (17)
Other comprehensive income/(expenses) to be
reclassified to profit or loss in subsequent periods
Exchange differences on translation of foreign operations - - - 119 4 (3,125)
Gains from available-for-sale investments (2,863) (269) 965 (2,785) (168) 1,558
Deferred tax effect on fair value adjustment of available-for-sale investment 576 258 123 576 258 123
Net gains/(losses) on available-for sale investments (2,287) (11) 20,956 (2,209) 90 (2,558)
Gains and losses on cash flow hedges (2,105) 3,045 (169) (2,105) 3,045 (169)
Other comprehensive income/(expenses) not to be
reclassified to profit or loss in subsequent periods
Revaluation of freehold land & buildings - 8,297 (100) 698 8,297 (92)
Deferred tax effect on revaluation surplus - (1,766) (100) - (1,766) (100)
Net change in revaluation surplus - 6,531 (100) 698 6,531 (89)
Actuarial gains/(losses) on defined benefit plans 690 (1,069) (165) 727 (1,069) (168)
Deferred tax effect on actuarial gains/(losses) on defined benefit plans (54) 129 (141) (54) 129 (141)
Net actuarial gains/(losses) on defined benefit plans 637 (940) (168) 674 (940) (172)
Total other comprehensive income/(expenses) (3,755) 8,625 (144) (2,824) 8,730 (132)
Total comprehensive income for the period 21,936 34,783 (37) 24,028 41,223 (42)
Attributable to:
Equity holders of the parent 21,936 34,783 (37) 23,050 40,365 (43)
Non-controlling interests - - - 978 859 14
21,936 34,783 (37) 24,028 41,223 (42)

 

16.3 Consolidated Statement of Financial Position

BANK GROUP
Current period
As at
31.12.2015
US$ '000 		Previous period
As at
31.12. 2014
US$ '000 		Change
% 		Current period
As at
31.12.2015
US$ '000 		Previous period
As at
31.12.2014
US$ '000 		Change
%
Assets
Cash and cash equivalents 82,094 23,536 249 82,282 24,822 231
Balances with Central Bank 48,610 51,104 (5) 48,610 51,104 (5)
Placements with banks 8,011 20,636 (61) 8,011 20,636 (61)
Derivative financial instruments 13,219 14,434 (8) 13,219 14,434 (8)
Financial assets-held-for-trading 20,731 21,117 (2) 36,316 45,706 (21)
Loans and receivables to banks 713 2,359 (70) 713 2,359 (70)
Loans and receivables to other customers 1,455,570 1,328,091 10 1,456,011 1,328,551 10
Financial investments - loans and receivables 248,822 290,390 (14) 259,505 293,279 (12)
Financial investments - available-for-sale 197,927 129,343 53 201,145 136,906 47
Financial investments - held-to-maturity 30,812 68,013 (55) 39,312 77,084 (49)
Investments held for sale 129 140 (8) 231 252 (8)
Investments in subsidiary companies 14,612 15,165 (4) - - -
Investment property - - - 11,611 11,719 (1)
Intangible assets 1,668 1,919 (13) 1,908 2,252 (15)
Property, plant & equipment 14,097 14,613 (4) 17,048 17,078 (0)
Other assets 9,912 11,021 (10) 14,035 14,225 (1)
Total assets 2,146,928 1,991,883 8 2,189,956 2,040,406 7
Liabilities
Due to banks 80,694 53,293 51 80,694 53,293 51
Derivative financial instruments 4,439 5,028 (12) 4,439 5,028 (12)
Due to other customers 1,284,259 1,151,052 12 1,278,835 1,148,485 11
Debt securities issued and other borrowed funds 420,332 469,715 (11) 420,124 469,491 (11)
Current tax liabilities 3,378 6,268 (46) 3,639 6,112 (40)
Deferred tax 4,878 4,696 4 4,950 4,624 7
Other liabilities 54,956 48,311 14 56,756 50,119 13
Dividends payable 417 390 7 417 390 7
Subordinated term debts 135,930 84,529 61 135,930 84,529 61
Total liabilities 1,989,283 1,823,282 9 1,985,785 1,822,071 9
Equity
Stated capital 8,630 9,289 (7) 8,076 8,683 (7)
Statutory reserve fund 8,630 7,663 13 8,630 7,663 13
Retained earnings 135,030 141,209 (4) 173,444 183,820 (6)
Other reserves 5,354 10,438 (49) 6,948 11,174 (38)
Total shareholders' equity 157,645 168,599 (6) 197,099 211,340 (7)
Non-controlling interests - - - 7,073 6,995 1
Total equity 157,645 168,599 (6) 204,172 218,335 (6)
Total liabilities and total equity 2,146,928 1,991,881 8 2,189,957 2,040,406 7
Net Book Value Per Share (USD) 0.95 1.02 (7) 1.20 1.28 (7)
Contingent liabilities and commitments 1,651,031 1,752,416 (6) 1,656,872 1,752,455 (5)
Memorandum Information
Number of Employees 1,960 1,744
Number of Branches 93 83

17. Interim Financial Performance - Group and Bank

17.1 Statement of Profit or Loss

Bank
LKR '000 Quarter 4 31.12.2015 Quarter 3 30.09.2015 Quarter 2 30.06.2015 Quarter 1 31.03.2015 Quarter 4 31.12.2014 Quarter 3 30.09.2014 Quarter 2 30.06.2014 Quarter 1 31.03.2014
Net interest income 2,015,766 1,843,930 1,741,914 1,920,215 1,893,935 2,011,647 1,973,188 1,795,831
Other operating income 966,482 1,141,910 868,296 1,710,776 889,176 909,803 898,997 1,289,390
Total operating income 2,982,248 2,985,840 2,610,210 3,630,990 2,783,111 2,921,450 2,872,185 3,085,221
Impairment for loans & receivables and other losses 194,664 318,872 261,799 (63,502) 242,428 101,449 193,633 28,493
Net operating income 2,787,584 2,666,968 2,348,411 3,694,493 2,540,683 2,820,001 2,678,552 3,056,728
Total operating expenses 1,544,025 1,556,793 1,543,338 1,405,424 1,393,055 1,378,336 1,229,405 1,308,396
Profit from operations 1,243,558 1,110,175 805,073 2,289,069 1,147,628 1,441,665 1,449,147 1,748,332
Share of associate companies' profit - - - - - - - -
Profit before taxation 1,243,558 1,110,175 805,073 2,289,069 1,147,628 1,441,665 1,449,147 1,748,332
Taxation (395,004) (450,310) (359,636) (731,494) (547,209) (502,867) (769,134) (549,500)
Profit for the period 848,555 659,865 445,437 1,557,574 600,419 938,798 680,013 1,198,832
Profit attributable to:
Equity holders of the parent 848,555 659,865 445,437 1,557,574 600,419 938,798 680,013 1,198,832
Non-controlling interests - - - - - - - -
848,555 659,865 445,437 1,557,574 600,419 938,798 680,013 1,198,832
Basic earnings per share (in LKR) 5.14 4.00 2.70 9.43 3.64 5.69 4.13 7.28
Diluted earnings per share (in LKR) 5.14 3.99 2.69 9.42 3.63 5.68 4.12 7.27

 

Group
LKR '000 Quarter 4 31.12.2015 Quarter 3 30.09.2015 Quarter 2 30.06.2015 Quarter 1 31.03.2015 Quarter 4 31.12.2014 Quarter 3 30.09.2014 Quarter 2 30.06.2014 Quarter 1 31.03.2014
Net interest income 2,102,097 1,902,158 1,819,330 1,983,792 1,952,090 2,064,925 2,033,432 1,862,959
Other operating income 1,576,221 1,574,655 1,175,198 1,157,857 1,341,065 1,309,395 1,035,734 1,366,455
Total operating income 3,678,318 3,476,813 2,994,528 3,141,650 3,293,155 3,374,320 3,069,166 3,229,414
Impairment for loans & receivables and other losses 201,187 327,339 281,121 (63,502) 222,964 85,776 94,384 125,584
Net operating income 3,477,131 3,149,473 2,713,407 3,205,152 3,070,191 3,288,544 2,974,781 3,103,830
Total operating expenses 1,803,152 1,746,450 1,718,962 1,561,316 1,605,584 1,522,422 1,349,455 1,433,155
Profit from operations 1,673,979 1,403,023 994,446 1,643,836 1,464,607 1,766,122 1,625,326 1,670,675
Share of associate companies' profit - 14,898 15,957 46,963 - - - 97,274
Profit before taxation 1,673,979 1,417,921 1,010,403 1,690,799 1,464,607 1,766,122 1,625,326 1,767,949
Taxation (332,582) (562,332) (426,887) (801,204) (527,635) (514,723) (772,596) (563,080)
Profit for the period 1,341,398 855,589 583,516 889,595 936,972 1,251,400 852,730 1,204,869
Profit attributable to:
Equity holders of the parent 1,254,439 843,797 574,531 869,275 857,660 1,242,340 843,045 1,190,885
Non-controlling interests 86,958 11,792 8,985 20,319 79,312 9,060 9,685 13,983
1,341,398 855,589 583,516 889,595 936,972 1,251,400 852,730 1,204,869
Basic earnings per share (in LKR) 7.62 5.13 3.49 5.28 5.68 7.75 5.24 7.41
Diluted earnings per share (in LKR) 7.62 5.12 3.48 5.27 5.34 7.62 5.24 7.41

 

17.2 Statement of Financial Position

Bank
LKR '000 As at
31.12.2015 		As at
30.09.2015 		As at
30.06.2015 		As at
31.03.2015 		As at
31.12.2014 		As at
30.09.2014 		As at
30.06.2014

As at
31.03.2014

Cash and cash equivalents 19,975,020 17,543,429 22,411,605 23,582,507 12,566,872 19,509,158 9,162,267 8,361,127
Net loans and receivables 209,704,701 192,527,763 181,435,628 175,633,823 175,486,347 164,951,727 153,743,532 145,414,432
Investments 73,876,706 62,113,872 61,414,034 58,134,409 69,137,786 64,784,042 66,953,926 50,778,802
Other assets 5,601,178 6,384,483 5,667,489 6,822,165 5,538,141 5,603,313 3,522,678 2,884,388
Total 309,157,605 278,569,547 270,928,756 264,172,904 262,729,146 254,848,240 233,382,404 207,438,749
Customer deposits 184,933,230 169,341,944 170,094,950 162,760,544 151,823,715 150,515,133 139,500,487 135,282,343
Borrowings 91,721,730 75,767,555 69,648,348 70,632,546 80,134,243 74,010,835 66,633,874 47,287,695
Other liabilities 9,801,787 9,616,638 7,575,200 7,604,820 8,532,996 7,408,478 6,660,594 4,964,605
Shareholders Funds 22,700,858 23,843,410 23,610,258 23,174,994 22,238,192 22,913,794 20,587,448 19,904,106
Total 309,157,605 278,569,547 270,928,756 264,172,904 262,729,146 254,848,240 233,382,404 207,438,749
Net asset value per share 137.44 144.36 142.95 140.37 134.70 138.84 124.77 120.84

 

Group
LKR '000 As at
31.12.2015 		As at
30.09.2015 		As at
30.06.2015 		As at
31.03.2015 		As at
31.12.2014 		As at
30.09.2014 		As at
30.06.2014 		As at
31.03.2014
Cash and cash equivalents 20,002,092 17,719,697 22,603,704 23,791,534 12,736,517 19,593,374 9,356,993 8,464,024
Net loans and receivables 209,768,193 192,528,547 181,469,407 175,659,497 175,547,050 164,945,855 153,767,778 145,472,939
Investments 77,257,188 66,234,659 64,452,825 61,380,473 72,970,513 68,607,489 70,575,810 54,259,369
Other assets 8,326,260 8,227,970 8,315,231 9,164,418 7,875,525 7,690,060 5,474,132 4,856,066
Total 315,353,733 284,710,873 276,841,167 269,995,922 269,129,605 260,836,778 239,174,713 213,052,398
Customer deposits 184,152,280 169,039,614 169,721,436 162,427,534 151,485,201 150,211,397 139,226,384 134,984,443
Borrowings 91,691,730 75,737,556 69,618,348 70,602,547 80,104,583 74,026,906 66,605,559 47,257,695
Other liabilities 10,109,006 9,877,556 7,889,172 7,912,640 8,741,402 7,536,486 6,926,197 5,219,171
Shareholders Funds 28,382,204 29,113,108 28,684,521 28,098,021 27,875,773 28,218,815 25,582,366 24,730,358
Non-Controlling Interests 1,018,513 943,039 927,690 955,180 922,646 843,174 834,207 860,731
Total 315,353,733 284,710,873 276,841,167 269,995,922 269,129,605 260,836,778 239,174,713 213,052,398
 
Net asset value 172.35 176.79 174.19 170.70 169.35 175.92 159.51 154.00

 

18. Ten Years at a Glance (Group Performance)

18.1 Statement of Profit or Loss

LKR million 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Income
Net interest income 2,853 3,522 3,787 4,233 4,163 4,910 5,896 7,012 7,913 7,807
Other operating income 2,133 1,474 1,662 2,560 2,785 3,012 9,042 4,537 5,053 5,484
Total operating income 4,986 4,997 5,449 6,793 6,948 7,922 14,938 11,549 12,966 13,291
Impairment for loans and receivables and other losses 13 65 116 373 (172) (88) 51 1,261 529 746
Net operating income 4,972 4,932 5,333 6,420 7,119 8,010 14,887 10,288 12,437 12,545
Less Operating Expenses
Personnel costs 830 949 1,151 1,300 1,567 2,118 2,333 2,660 3,172 3,634
Other operating costs 929 1,104 1,237 1,370 1,496 1,863 2,163 2,904 2,738 3,196
Total operating expenses 1,760 2,053 2,388 2,670 3,063 3,981 4,496 5,564 5,910 6,830
Operating Profit before Share of Associate Companies, profit before tax 3,213 2,879 2,945 3,750 4,056 4,030 10,391 4,724 6,527 5,715
Share of associate companies' profit 214 179 172 526 295 331 439 49 97 78
Profit before taxation 3,427 3,058 3,118 4,276 4,351 4,361 10,830 4,773 6,624 5,793
Taxation (1,220) (1,421) (1,409) (2,154) (2,175) (1,597) (1,898) (2,061) (2,378) (2,123)
Profit after taxation 2,207 1,637 1,708 2,121 2,176 2,764 8,932 2,712 4,246 3,670
Non-controlling interests (176) (115) (103) (37) (73) (235) (78) (70) (112) (128)
Profit attributable to equity holders of the parent 2,030 1,521 1,605 2,085 2,103 2,528 8,854 2,642 4,134 3,542

 

18.2 Statement of Financial Position

LKR million 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assets
Liquid assets 6,042 7,748 5,883 8,243 5,586 7,651 13,269 8,139 12,737 20,002
Investments 12,170 14,701 18,509 32,128 29,199 29,992 39,587 55,614 72,971 77,257
Loans and receivables 42,418 49,818 54,589 54,107 69,274 99,456 117,222 137,523 175,547 209,768
Investments in associate companies 1,179 1,210 1,393 1,724 1,763 1,797 33 77 - -
Property, plant & equipment 691 804 781 806 918 1,504 1,541 1,473 2,550 2,730
Investment property 1,200 1,200 1,200 1,200 1,200 1,296 1,296 1,384 1,546 1,672
Other assets 1,276 661 925 1,075 691 962 1,154 2,608 3,780 3,925
Goodwill - - - 4 4 - - - - -
Total Assets 64,977 76,143 83,280 99,286 108,635 142,588 174,103 206,818 269,130 315,354
Liabilities
Borrowings 29,204 34,147 34,993 29,561 28,631 38,973 36,630 47,344 80,104 91,692
Deposits with customers 21,161 25,624 31,091 49,948 60,533 82,094 107,394 129,423 151,485 184,152
Taxation 640 522 352 560 633 397 713 625 1,416 1,237
Other liabilities 2,091 2,750 3,614 4,334 2,826 3,286 3,657 4,062 7,326 8,872
Total Liabilities 53,096 63,043 70,050 84,403 92,623 124,750 148,394 181,454 240,331 285,953
Shareholders' Funds
Stated capital 1,033 1,033 1,033 1,033 864 864 864 944 1,145 1,163
Statutory reserves 819 819 819 819 879 879 879 959 1,011 1,243
Other reserves - - - - - 387 924 1,880 1,474 1,000
Retained earnings 8,715 9,833 10,811 12,345 13,552 14,796 22,216 20,733 24,246 24,976
Total shareholders' funds 10,567 11,685 12,662 14,197 15,295 16,926 24,883 24,516 27,876 28,382
Non-controlling interests 1,314 1,415 568 687 717 913 826 848 923 1,019
Total funds employed 11,881 13,100 13,230 14,883 16,012 17,838 25,709 25,364 28,799 29,401
Total liabilities and funds employed 64,977 76,143 83,280 99,286 108,635 142,588 174,103 206,818 269,130 315,354

 

18.3 Share Information

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market price per share (LKR) 201.00 170.00 86.00 206.00 174.50 138.10 138.10 161.50 250.00 194.10
Basic earnings per share (LKR) 12.40 9.30 9.80 12.75 12.81 15.79 55.31 16.48 25.14 21.51
Interim dividends per share (LKR) - - - - 4.00 3.50 5.00 5.00 7.00 7.00
Final dividends per share (LKR) 4.00 6.00 6.75 8.00 4.50 4.00 10.00 5.00 4.00 4.00
Total dividends per share 4.00 6.00 6.75 8.00 8.50 7.50 15.00 10.00 11.00 11.00
Dividend cover (Times) 6.20 3.72 3.27 3.77 2.19 2.05 3.69 1.65 2.29 1.96
Price earnings ratio (Times) 8.10 9.14 4.39 8.08 13.63 8.97 2.56 9.74 9.94 9.02
Net Asset value per share (LKR) 64.54 71.38 77.35 86.72 93.15 103.08 151.54 148.85 169.35 172.35

19. Compliance Report in terms of Section 7.6 - Contents of the Annual Report in Terms of the Listing Rules of the Colombo Stock Exchange

Tabulated below is how the contents of the Annual Report is complied as specified in Section 7.6 of the Listing Rules issued by the Colombo Stock Exchange. The table provides the disclosure requirements of Section 7.6, the compliance level of the Bank and where you will find the respective disclosures within this Annual Report.

Rule No. Disclosure Requirement
7.6 (i) Names of persons, who during the financial year, were Directors of the entity
7.6 (ii) Principal activities of the entity and its subsidiaries during the year and any changes therein
7.6 (iii) The names and the number of shares held by the 20 largest holders of voting shares and the percentage of such shares held
7.6 (iv) The public holding percentage
7.6 (v) A statement of each Director's holding and Chief Executive Officer's holding in shares of the entity at the beginning and end of the financial year
7.6 (vi) Information pertaining to material foreseeable risk factors of the entity
7.6 (vii) Details of material issues pertaining to employees and industrial relations of the entity
7.6 (viii) Extents, locations, valuations and the number of buildings of the entity's land holdings and investment properties
7.6 (ix) Number of shares representing the entity's stated capital
7.6 (x) A distribution schedule of the number of holders in each class of equity securities, and the percentage of their total holdings in the following categories - No. of holders, holdings, total holdings percentage.
7.6 (xi) Ratios and market price Information
  • Equity: Dividend per share, dividend payout, net asset value per share, market value per share (highest and lowest values recorded during the financial year and value as at the end of financial year);
  • Debt: Interest rate of comparable Government Securities, debt/equity ratio, Interest cover, quick assets ratio,market prices and yield during the year - (ex-interest) - highest price - lowest price, last traded price.
  • Any changes in the credit rating (for the entity or any other instruments issued by the entity), if applicable.
7.6 (xii) Significant changes in the entity's or its subsidiaries fixed assets and the market value of land, the value differs substantially from the book value
7.6 (xiii) Details of the funds raised either through a public issue, rights Issue or private placement;
  • A statement as to the manner in which the proceeds of such issue has been utilized.
  • If any shares or debentures have been issued, the number, class and consideration received and the reason for these;
  • Any material change in the use of funds raised through an issue of Securities.
7.6 (xiv) Employee Share Option Scheme details
Employee Share Purchase Schemes details
7.6 (xv) Disclosures pertaining to Corporate Governance practices in terms of Rules 7.10.3, 7.10.5 c. and 7.10.6 c. of Section 7 of the Rules.
7.6 (xvi) Related party transactions exceeding 10% of the equity or 5% of the total assets of the entity as per Audited Financial Statements, whichever is lower

Detail of investments in a related party and/or amounts due from a related party. Including details:

  • the date of the transaction,
  • name of the related party,
  • the relationship between the equity and the related party,
  • the amount of transaction and terms of the transaction,
  • the rationale for entering into the transaction.

20. Shareholder Enquires and Communications

Investor Relations Team

Ms. Suvendrini Muthukumarana
Assistant Vice-President - Finance & Planning
Tel.: + 94 112 448 448/Ext. 3817
Fax: + 94 112 341 047
Email: investor.relations@ndbbank.com

Company Secretarial Division

Ms. Shehani Ranasinghe
Company Secretary
Tel.: + 94 112 448 448/Ext. 33000
Fax: + 94 112 341 050
Email: shehani.ranasinghe@ndbbank.com

Address:

National Development Bank PLC,
No. 40, Navam Mawatha,
Colombo 02,
Sri Lanka